Traders Split Over No UPI Day on October 2 as CTI Pushes Strike While CAIT Pulls Out Protesting merchant discount rate charges on transactions above 2,000 rupees, CTI has called for a No UPI Day on October 2, while CAIT has chosen to abstain. Consumers relying entirely on smartphone applications for their daily expenses face potential disruption as a faction of merchants has declared an observance of No UPI Day on October 2, coinciding with Gandhi Jayanti. Commercial associations across the country stand deeply fractured over the demonstration. While the Chamber of Trade and Industry, known as CTI, has decided to remain firm on its decision to spearhead the protest, the Confederation of All India Traders, commonly known as CAIT, has distanced itself from the shutdown drive. Merchant Discontent Over Proposed Transaction Levies The core grievance driving this merchant unrest revolves around the implementation of the Merchant Discount Rate, or MDR, on digital transfers. Representatives at CTI maintain that levying charges on UPI transactions exceeding 2,000 rupees will severely burden small and medium enterprises. In an effort to demonstrate cross-regional solidarity, CTI has appealed to shopkeepers and commercial establishments across various states to join the No UPI Day. The organization has also urged store owners to register their symbolic dissent by tying black bands across their UPI QR displays and soundbox devices. Rival Trade Associations Take Opposite Stance The rift between prominent retail associations has become visibly pronounced as preparations get underway. CAIT has surprised market observers by completely opting out of the demonstration, choosing not to disrupt retail operations. Conversely, CTI refuses to backtrack, expressing confidence that widespread retail support will materialize on the scheduled date. This split between major industry bodies creates an uncertain atmosphere for both sellers and patrons heading into the festive period. Projected Fifty Percent Slump in Digital Volumes CTI has raised alarms regarding the broader economic repercussions of the levy, claiming that imposing MDR on transactions above 2,000 rupees could cause digital payments to plummet by nearly 50 percent. The merchant body warned that such fees would reverse gains made in digital adoption and inevitably revive reliance on physical cash. Details circulating regarding the structure point toward a proposed 0.4 percent MDR on payments crossing the 2,000 rupees threshold, though uniform pricing will not apply across all merchant classifications. Fixed Fee Architecture and Fuel Station Transactions The proposed structure includes targeted variations rather than a universal rate for every digital transaction. A flat-rate framework has been earmarked for specific specialized payment environments. At retail fuel outlets, such as petrol pumps, transactions are designed to attract a fixed MDR rather than an open-ended percentage cut. This flat handling charge has been fixed at 5 rupees per transaction, offering a capped expense model for larger vehicle refueling bills. Zero MDR Window for Small Merchants Under 1 Lakh Amid concerns of widespread retailer friction, the regulatory contours provide an exemption umbrella for smaller establishments. Commercial merchants handling payment volumes up to 1 lakh rupees are slated to fall under the zero MDR slab. Businesses within this turnover band will operate completely free of merchant discount rates. The ultimate impact of this opposing stance between CTI and CAIT will become evident on October 2, though consumer inconvenience appears inevitable wherever store owners choose to honor the call. What this means for you The call for No UPI Day on October 2 could cause practical friction for consumers relying strictly on digital payments for retail purchases. • Carrying Physical Currency: Protesting store owners may decline QR code transactions on Gandhi Jayanti. Shoppers should carry backup paper currency to avoid being stranded at billing counters. • Bills Exceeding 2,000 Rupees: A proposed 0.4 percent MDR is slated specifically for transactions crossing 2,000 rupees. Shoppers making high-value retail purchases may find merchants actively steering them toward non-digital channels. • Flat Levy at Fuel Stations: Selected transactions at petrol pumps carry a fixed 5 rupees charge under the proposed structure. Motorists refueling vehicles should factor in this flat fee when paying through digital modes. • Exemption for Micro Vendors: Merchants with payment thresholds up to 1 lakh rupees are placed in the zero MDR category. Daily essentials from local neighbourhood vendors and tea stalls should remain completely unhindered by transaction fees. Why this happened The primary driver behind this protest is the proposal to levy Merchant Discount Rates on higher-value UPI transactions. Merchants fear that absorbing these handling charges will cut directly into retail margins. • Threshold Charge of 0.4 Percent: Discussions around introducing a 0.4 percent MDR on transactions exceeding 2,000 rupees sparked immediate backlash from CTI. The trade body argues that the fee imposes an unfair administrative cost on growing retail counters. • Fears of Digital Volume Decline: CTI projects that imposing payment charges could cause UPI transaction volume to contract by nearly 50 percent. Merchant representatives warn that buyers and sellers would naturally revert back to physical cash transactions. • Disagreement Among National Associations: A major strategic divide emerged between retailer bodies, with CTI advancing protest plans and CAIT distancing itself entirely. This division stems from differing views on engaging with payment frameworks versus calling public boycotts. Questions & Answers 1. On which date has the No UPI Day been scheduled? Trade body CTI has announced that No UPI Day will be observed on October 2, on the occasion of Gandhi Jayanti. 2. Why are merchants staging a protest against UPI? The protest is directed against the proposed imposition of Merchant Discount Rate charges on UPI payments crossing 2,000 rupees. 3. Are all merchant associations participating in the strike? No, retail groups are divided, and the Confederation of All India Traders has opted out of the protest. 4. What is the proposed MDR fee for transactions above 2,000 rupees? Reports indicate a proposed MDR rate of 0.4 percent on transaction values exceeding 2,000 rupees. 5. What rule applies to digital transactions at petrol pumps? A flat-rate structure applies to selected fuel transactions, setting a fixed fee of 5 rupees. 6. Which category of sellers is exempt from paying MDR? Merchants receiving payments up to 1 lakh rupees are placed under the zero MDR category with full exemption. https://trendkia.com/en/national/2-aktubara-ko-no-upi-day-ki-pukara-para-karobari-bnte-cti-karega-virodha-to-cait-ne-banai-duri-41294 TrendKia — Har trend, sabse pehle.